UNDERSTANDING BUSINESS-W/ACCESS>CUSTOM<
11th Edition
ISBN: 9781259691980
Author: Nickels
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 17, Problem 1CT
Summary Introduction
To think critically about: The necessity of an investor to evaluate the financial statements of the company.
Introduction: Financial statements refer to statements that describes the status of the entity’s assets, liabilities, capital, receipts, expenses and earnings.
Expert Solution & Answer
Explanation of Solution
Given information: A person is willing to invest in a company.
Explanation: It is important for an investor to evaluate financial statements of a company due to the following reasons:
- To understand the ability of the company to repay principal or to receive back the capital invested.
- To understand the ability of the company to pay interest and dividend.
- To assess the extent of increase or decrease in the value of the share in case of investment in equity shares.
- Therefore it is important for the investor to assess the financial statements of the company.
Some of the key information that an investor would seek from the financial statements are as follows:
- Net income of the company.
- Total assets of the company.
- Exiting loan of a company.
- EPS of the company.
Conclusion
Thus, investor would be willing to evaluate financial statements, to analyze the return that can expected from the company and the investor would generally seek information regarding net income, total assets, loan and EPS of the company.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What is the board’s role in corporate governance — and how does that differ from management’s role?
Please include references.
Use the literature to explain why qualitative methodology and case study research design are the best for your study based on the purpose of the study.
Use literature to say why semi- structured interviews and a focus group to state why these are good methods of qualitative study
Chapter 17 Solutions
UNDERSTANDING BUSINESS-W/ACCESS>CUSTOM<
Ch. 17.2 - Prob. 17.2AQCh. 17.2 - Prob. 1TPCh. 17.2 - Prob. 2TPCh. 17.2 - Prob. 3TPCh. 17.3 - Prob. 5TPCh. 17.3 - Prob. 6TPCh. 17.3 - Prob. 7TPCh. 17.3 - Prob. 8TPCh. 17.4 - Prob. 17.4AQCh. 17.4 - Prob. 17.4BQ
Ch. 17.4 - Prob. 17.4CQCh. 17.4 - Prob. 17.4DQCh. 17.4 - Prob. 9TPCh. 17.4 - Prob. 10TPCh. 17.4 - Prob. 11TPCh. 17.4 - Prob. 12TPCh. 17.4 - Prob. 13TPCh. 17.4 - Prob. 14TPCh. 17.4 - Prob. 15TPCh. 17.4 - Prob. 1MEDCh. 17.5 - Prob. 12TPCh. 17.5 - Prob. 13TPCh. 17.5 - Prob. 17.5AQCh. 17.5 - Prob. 17.5BQCh. 17 - Prob. 1CTCh. 17 - Prob. 2CTCh. 17 - Prob. 3CTCh. 17 - Prob. 4CTCh. 17 - Prob. 1DWSCh. 17 - Prob. 2DWSCh. 17 - Prob. 3DWSCh. 17 - Prob. 4DWSCh. 17 - Prob. 5DWSCh. 17 - Prob. 1TITCh. 17 - Prob. 2TITCh. 17 - Prob. 1VCCh. 17 - Prob. 2VCCh. 17 - Prob. 3VC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- The principles of good lending that are normally followed in many lending decisions are What are the possible principles listed below that an organization can use a.the margin of profit , b. the purpose of the loan c. security that is not required in case of non payment by the borrower , d. the character of the borrowerarrow_forwardDrawing on the insights from the provided article and your critical observations of South African public administration, engage in a comprehensive discussion of the underlying causes of unethical conduct within the public sector. In your response, consider the broader societal, political, and economic consequences that arise from such unethical behaviourarrow_forwardInsureCo salespeople talk to each other using insurance industry jargon. Which adverse business effect can using "industry gibberish" have on InsureCo's operations? Select an answer: Communication will not always be clear among other employees. Older workers will make generalizations about younger workers. New employees cannot be onboarded in that type of environment. Jargon does not have a specific meaning within the company.arrow_forward
- Consider the fast food industry (take the point of view of McDonalds). Give me one example of each of the five forces that impact this industryarrow_forwardWhat is a good response to this post? While Australia and the United States share very similar cultures overall, there are a couple of differences that must be considered when developing REI's global expansion strategy. Both countries score low in the "Power Distance" category because managers tend to incorporate employee perspectives into the decision-making process and manage their teams in an inclusive, participatory manner (The Cultural Factor Group, 2023). "Motivation Towards Achievement and Success" (formally Masculinity) is also similar with the high scores in both countries qualifying them as "decisive" cultures that value professional and personal success and achievement (The Cultural Factor Group, 2023). The two areas where there is the greatest difference are in the "Individualism" and "Uncertainty Avoidance" categories. Australia is considered a more individualistic society with a greater emphasis on self-reliance over communal and government involvement in personal and…arrow_forwardWhat is a good response to this post? Nike’s value chain reengineering is a stellar example of how effective BPR can lead to consistent success. By focusing on high-value, knowledge-intensive activities like design and marketing within the U.S. and outsourcing manufacturing through third-party contractors, Nike was able to streamline its operations and put a focus on core competencies. This approach has allowed Nike to achieve high returns while maintaining flexibility and adaptability in its supply chain. However, while Nike exemplifies success, not all reengineering efforts see positive results. An example of an unsuccessful BPR occurred with Hershey’s ERP (Enterprise Resource Planning) system implementation in 1999. Hershey’s sought to improve its processes by rolling out a new integrated software system to manage production, operations, and distribution. While their goal was to increase efficiency and streamline delivery, poor planning ultimately doomed the project. Hershey…arrow_forward
- What is a good response to this post? When planning for global expansion into Italy, it's important to understand the cultural differences between Italy and the United States as outlined by Hofstede’s four dimensions. Italy and the U.S. exhibit comparable scores in Power Distance, reflecting a similar approval of hierarchical systems and authority in organizations. Both cultures acknowledge the importance of leadership roles while also respecting egalitarian principles. The U.S. scores higher in individualism compared to Italy, indicating a strong focus on personal achievements and independence. In contrast, while Italy is still individualistic, it places a greater emphasis on family and close-knit relationships. This suggests that in Italy, business decisions may be impacted more by familial ties and personal networks than they are in the U.S. Both countries show high masculinity scores, reflecting a cultural preference for competitiveness, achievement, and material success. This…arrow_forwardWhat is a good response to this post? For this discussion, I will share an example from the company I work for, referring back to the example I shared in week one concerning the ATM upgrade and debit card changes. When our company switched ATM and debit card processors, so did our process for fraud disputes. Initially, when a member’s card was frauded, they would come into the branch, we would refund their money under provisional credit, and then send off the dispute to the processor for them. This process worked well most of the time, but in the instances where a member claimed fraud and the processing company determined it was not fraud, their money was then taken back. With the new system, it is up to the member to file their own dispute, and they now have to wait 45-60 days to receive a refund if they are frauded. Due to the sheer uptick in fraudulent behavior, this was a smart choice for the credit union because one department cannot simply keep up, and outsourcing to a third…arrow_forwardWhat is a good response to this post? Business Process Reengineering (BPR) is the fundamental transformation of business processes to bring about dramatic performance improvement in areas of critical measurements such as cost, quality, service, and speed. A classic example of successful BPR is Ford Motor Company's reengineering of its accounts payable process. Ford's accounts payable function during the 1980s was labor-intensive and inefficient, employing some 500 workers. The company reengineered this process by implementing an invoice-less system where purchasing orders were put in an online database accessible to both the suppliers and the receiving department. At delivery, the receiving department would compare the goods with the purchase order on the system. When they matched, the system would authorize payment automatically, eliminating manual matching and the associated errors. This reengineering led to a reduction of 75% in the accounts payable personnel, with substantial cost…arrow_forward
- What are 20 questions I could put on a PAQ when interviewing a training and development specialist?arrow_forwardwaubonsee.instructure.com/courses/23979/assignments/587471 Points 75 C Submitting a file upload Available Jan 21 at 12am - Apr 13 at 11:59pm 2025 Due Sunday by 11:59pm ne ouncements bus Materials (IA) m dules bring: ubonsee bring Services or.com: 24/7 ine Tutoring des 19 ice 365 ogle Drive scussions rary What You Are Doing: Submit a 3-4 page essay comparing and contrasting to texts. These can be short stories, two tv programs, The final assignment should include an MLA formatted outline that includes: 1) Introduction paragraph with a clear thesis 2) Topic sentences for at least 3 body paragraphs that advance your thesis - these are known as the minor claims Include quotes from the text and introduce them with a signal phrase + add an in- text citation. 3) A conclusion that restates your thesis and sums up the points of your paragraphs. 4) Works Cited page that include your two sources/texts AND correctly formatted in MLA (see your textbook NFG P. 548 or LSH P. 150) Prompt For this…arrow_forwardI need helping creating a Position Analysis Questionaire (PAQ) for the Training and Development Specialist positionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,